No instrument in place to check the industrial turnover in Himachal Pradesh, says CAG

By NewsGram Staff Writer

Himachal Pradesh – a state that exudes sheer beauty – does not know its industrial potential, including availability of human resource, revealed a recent report of the Comptroller and Auditor General (CAG).

India's official auditor said that there is no instrument in place to check the industrial turnover, value of output and profitability to see whether these are in proportion to the burden of tax concessions and subsidies on the public exchequer.

The report blamed the state industries department for not conducting survey to determine the actual new investments brought in and scope of value addition in manufacturing by the units from 2003 to 2010 when central government's special industrial package was on board.

The report also reflected that the industrial growth of the state is not in proportion to the growth of the gross state domestic product (GSDP).

The total input to GSDP during 2009-14 by 5,611 registered manufacturing units was Rs. 54,367 crore whilst the total fiscal load of tax concessions and subsidies on the central and state exchequer was Rs. 35,606 crore, including Rs. 35,411 crore of the Centre.

Employment generation in the state also witnessed a decreasing trend, which plunged to 6,014 during 2013-14 from 13,704 during 2009-10.

The director of industries reverted to the auditor and stated that the state has difficult geographical and topographical conditions.

CAG also found defects in the establishment of a sewage treatment plant in the state's major industrial belts Baddi and Barotiwala in the Solan district.

The work of the common effluent plant was not completed until last November due to the delay in environment clearance from the minister of environment and forests. The delay in the work shot up the estimated cost of the plant to Rs.60.95 crore from Rs.53.80 crore.

It was also told by the auditor that widening and strengthening of road was not completed in Baddi and Barotiwala until last November owing to non-completion of formalities. Amount of Rs. 13.74 crore has already been spent on it.